A prepaid card includes a prepaid card identifier and is associated with a consideration for which the prepaid card can be redeemed. The consideration can be anything of value, such as products or services. Partial redemption is possible if the prepaid card is associated with a consideration that can be prorated. For example, a prepaid card can be a retail store gift card with a dollar value, a prepaid cellular airtime card, or any other prepaid card that redeems for multiple products or instances of service.
Previously, a card purchaser pays for a prepaid card at the time of purchase. A card purchaser wishing to purchase one or more prepaid cards from a retail location, such as a store or an automated kiosk, receives the prepaid cards in exchange for payment in currency. This is disadvantageous to the card purchaser if there will be delay between the purchase and the redemption of the prepaid card.
Previously, retail stores receive prepaid cards from wholesalers for in-store placement and sale to card purchasers. In some instances, retail stores only pay the wholesalers for the prepaid cards when the prepaid cards are purchased by the card purchasers. This is advantageous to the retail store by minimizing inventory and carrying costs of the prepaid cards.
A card purchaser can purchase prepaid cards in bulk for distribution as gifts in promotional or marketing activities. Such prepaid cards are distributed to card recipients as part of the promotion or marketing activity. Many prepaid cards can remain unused by the card recipients. This creates waste for the card purchaser in the unused prepaid cards. Further, paying the card purchase price does not benefit the card purchaser until the prepaid cards are used by the card recipients, when the promotional or marketing benefits accrue.